The Federal Housing Administration was created by congress in 1934. Its purpose was to encourage the construction and home ownership in the lower price ranges.
The FHA does not actually lend money. It insures loans made according to its regulations by lenders it has approved. For this insurance the borrower pays a premium each year on the average debt balance.
The maximum amount one can borrow depends on the location of the house. Currently in Dallas the maximum is $217,050, while in San Francisco it is $729,750.
A good lender will evaluate your situation and determine if FHA is the best for you.
If you need help in finding a home or a good lender give me a call.
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